Tax Advantages, Savings Boost for 529 Contributions, Brewster Says

December 17, 2014

Harrisburg – Dec. 17, 2014 – To better manage the cost of higher education and cut tax liability this year, state Sen. Jim Brewster (D-Allegheny/Westmoreland) today reminded students and parents that contributions to an approved college savings plan by Dec. 31 are tax deductable.

pa529“The high cost of a college education is a real challenge for students and parents,” Brewster said.  “A 529 plan helps families manage costs and provides a means to reduce tax obligations.”

Brewster noted that state Treasurer Rob McCord’s office is offering free enrollment in the PA Guaranteed Savings Plan and the PA 529 Investment Plan.

“There are a great many resources available to help students, parents and families deal with the high cost of college,” Brewster said.  “Establishing a PA 529 plan and making contributions is an excellent way for families to both save for college and lower tax bills at the same time.”

The treasurer reported that there are now nearly 200,000 accounts with more than $3.3 billion in assets that are being managed by his office.

Taxpayers can deduct up to $14,000 per beneficiary in PA 529 contributions from Pennsylvania taxable income on their state tax returns for 2014. Married couples filing jointly can deduct up to $28,000 per beneficiary if each spouse has taxable income of at least the amount deducted.

The PA 529 College Savings Program is offering free enrollment ($50 savings) for all new PA 529 Guaranteed Savings Plan (GSP) accounts opened by Dec. 31.

Brewster said that if students, parents, guardians or others need more information or want to enroll, they can visit www.PA529.com. To take advantage of the $50 savings, use enrollment code Brewster when prompted.

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Now is a Good Time to Enroll in a College Savings Plan

August 16, 2011

McKeesport, Aug. 16, 2011— Families saving for college have a unique opportunity to start paying for college credits at the current credit rates through a state-run college savings plan, state Sen. Jim Brewster said today.

He said families that enroll in the Pennsylvania 529 College Savings Program by Aug. 31 can lock in this year’s credit rates. As of Sept. 1, credit prices will likely rise due to increases in tuition rates for this coming academic year.

 “The 529 College Savings Program is a safe and smart way for families to invest in their child’s higher education,” Brewster said. “I encourage folks to look into taking advantage of this window, enrolling for free online and buying college credits now under today’s tuition credit prices.”

Brewster said free enrollment in the PA 529 Guaranteed Savings Plan is available through September.

Click here to visit the PA 529 website to use the coupon code SAVE NOW to have the $50 enrollment fee waived upon enrolling in the PA 529 Guaranteed Savings Plan.

The Pennsylvania 529 College Savings Program allows families to invest in their child’s college education through two plans: the PA 529 Guaranteed Savings Plan, in which growth is tied to the rate of college tuition inflation; and the PA 529 Investment Plan, in which investment returns are determined by financial markets.

“These are great opportunities for parents to save for their child’s college education,” Brewster said. “With tuition rates increasing nearly every year, this is a solid and affordable college savings plan.”

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